TIDMRMP
RNS Number : 0976Z
Red Emperor Resources NL
29 August 2018
29 August 2018
Red Emperor Resources NL
ALASKA UPDATE - RIG CONTRACT EXECUTED
The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("Red
Emperor" or the "Company") is pleased to advise that consortium
operator, 88 Energy Limited (ASX/AIM: 88E) via its wholly owned
subsidiary, Captivate Energy Alaska, Inc, has executed a rig
contract for the drilling of the "Winx" Prospect, located on the
Western Blocks, North Slope of Alaska.
Highlights
-- Rig Contact Executed with Nordic-Calista Services
-- Permitting process proceeding as anticipated
-- Prospect to be named "Winx" with drilling on schedule to commence 1Q2019
The rig contract was executed with Nordic-Calista Services
utilising Rig 3, which is a single module, self-propelled drilling
rig, capable of drilling to depths of 12,000' - 14,500'. The rig
structure is fully winterised for Arctic Operations and the rig has
previously been utilized for grassroots drilling, exploration,
sidetracks and workovers on the North Slope.
The Winx Prospect is a 3D seismic defined oil prospect in the
successful Nanushuk play fairway with a gross mean unrisked
prospective resource of 400MMbbls (126MMbbls net to Red Emperor)
and a geological chance of success in the range of 25-30%. Refer to
the ASX release of 25 June 2018 for further details.
Cautionary Statement: The estimated quantities of petroleum that
may be potentially recovered by the application of a future
development project relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of
development. Further exploration, appraisal and evaluation are
required to determine the existence of a significant quantity of
potentially moveable hydrocarbons.
Red Emperor's Managing Director, Greg Bandy, commented: "Once
again the consortium has shown its ability to move swiftly and
efficiently with another important milestone achieved. 2019 is fast
approaching and everything remains on track for drilling to
commence on the large and exciting Winx prospect in early
2019."
About Nordic-Calista Services:
In 1985 Nordic Well Servicing formed a joint venture partnership
with Calista Corporation and Nordic-Calista Services was created.
Founded in 1972, Calista Corporation is the second largest of the
13 regional corporations formed under the Alaska Native Claims
Settlement Act (ANCSA) of 1971. It is a business corporation formed
under State and Federal laws, including the Settlement Act and its
amendments. In the Shareholders' Yup'ik Eskimo language the name
"Calista" translates to "Cali" which means work and "ista" which
means someone or something which does.
Nordic-Calista Services is directed by its President, Ron
Rowbotham, and Financial Director, James Albach. With over 40 years
of oilfield experience, Ron is committed to providing the benefit
of his extensive knowledge and experience to each and every
customer. Based in Anchorage, Nordic-Calista Services' Operations
Manager, Noel Therrien, has over 30 years of service with the
company and offers 20 plus years of operations experience in the
arctic.
For further information please visit
http://www.redemperorresources.com/ or contact:
Red Emperor Resources:
Greg Bandy +61 8 9212 0102
Grant Thornton UK LLP (Nominated Adviser):
Philip Secrett, Jen Clarke 020 7383 5100
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
About Red Emperor Resources NL
Red Emperor Resources NL is an Australian natural resource
exploration company listed on both the Australian Securities
Exchange (ASX: RMP) and Alternative Investment Market (AIM: RMP).
Red Emperor has oil and gas interests on the Alaska North Slope and
in South East Asia.
Alaska
Red Emperor has executed Definitive Agreements with its
consortium partners 88 Energy Limited and Otto Energy Limited that
will see the Company participate in the drilling of a highly
prospective Nanushuk oil trend exploration well on the Alaska North
Slope in early 2019. The drill target is immediately adjacent to
and a direct analogue of the Horseshoe-1/1A oil well drilled in
2017. Horseshoe is part of the billion-barrel plus Nanushuk oil
play-fairway, one of the largest conventional oil fields discovered
in the US in more than 30 years.
Technical work on the Western Blocks has identified a gross best
estimate prospective resource volume of 400 MMbbls (126 MMbbls net
to RMP), and a geological chance of success of 25%-35%. The
estimated quantities of petroleum that may potentially be recovered
by the application of future development projects relate to
undiscovered accumulations. These estimates have both an associated
risk of discovery and a risk of development. Further appraisal and
evaluation is required to determine the existence of a significant
quantity of potentially moveable hydrocarbons.
The relevant interests in the Western Blocks under the
commercial agreements (subject to standard regulatory approval by
the State of Alaska) are as follows:
Current Post Transaction
Working
Interest
==================== -----------------------------------------------------------------------------------------------------------
Working Interest Paying Interest Net Revenue Working
(before back-in) (before back-in) Interest* Interest***
(before back-in) (after back-in)
==================== ============================ ================== ============================ ===========================
Red Emperor - 31.5% 35% 26.25% 28%
=============================== ==================== ============================ ================== ============================ ===========================
88 Energy
(Drilling Manager) - 36.0% 40% 30.00% 32%
=============================== ==================== ============================ ================== ============================ ===========================
Otto Energy 10.8% 22.5% 25% 18.75% 20%
=============================== ==================== ============================ ================== ============================ ===========================
Great Bear
Petroleum** 89.2% 10.0% - 8.33% 20%
=============================== ==================== ============================ ================== ============================ ===========================
Alaskan State - - - 16.67%
=============================== ==================== ============================ ================== ============================ ===========================
100.0% 100.0% 100.0% 100.0% 100%
=============================== ==================== ============================ ================== ============================ ===========================
* Government royalty of 16.67%
** Currently Operator of record on leases
*** "After back-in" interests reflect position if Great Bear
exercise option to acquire further 10% working interest
Philippines
SC55 is located in the southwest Palawan Basin, covers an area
of 9,880km(2) and was awarded to Otto Energy Investments Ltd
(formerly NorAsian Energy Ltd) in 2005. It is a deep-water block in
the middle of a proven regional oil and gas fairway that extends
from the productive offshore Borneo region in the southwest to the
offshore Philippine production assets northwest of Palawan.
Red Emperor participated in a USD $25m exploration well
(Hawkeye-1) within the block in 2015 and contributed in excess of
AUD $5m towards drilling costs. Over USD $50m has been spent
exploring SC55 to date and a number of drill-ready targets remain,
including the "Cinco" gas prospect which has a best estimate
prospective resource of 1.6tcf recoverable gas.
Prospective Resources Reporting Notes
The Company announced the prospective resources estimate for the
Western Blocks in its announcement "Red Emperor to acquire interest
in large oil prospect in prolific Alaska North Slope" on 25 June
2018. The Company confirms that it is not aware of any new
information or data that materially affects the information
included in that announcement, and that all material assumptions
and technical parameters underpinning the estimates in that
announcement continue to apply and have not materially changed.
(i) The prospective resources information in this document is
effective as at 30 April 2018. (ii) The prospective resources
information in this document has been estimated and is classified
in accordance with SPE PRMS (Society of Petroleum Engineers
Petroleum Resources Management System). (iii) The prospective
resources information in this document is reported according to the
Company's economic interest in each of the resources and net of
royalties. (iv) The prospective resources information in this
document has been estimated and prepared using the deterministic
method. (v) The prospective resources information in this document
has been estimated using a 6:1 BOE conversion ratio for gas to oil;
6:1 conversion ratio is based on an energy equivalency conversion
method and does not represent value equivalency. (vi) The
prospective resources information in this document has been
estimated on the basis that products are sold on the spot market
with delivery at the sales point on the production facilities (vii)
Prospective resources are reported on a best estimate basis. (viii)
For prospective resources, the estimated quantities of petroleum
that may potentially be recovered by the application of a future
development project(s) relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of
development. Further exploration appraisal and evaluation is
required to determine the existence of a significant quantity of
potentially moveable hydrocarbons. (ix) In respect to the
prospective resources referred to in this statement, Red Emperor's
working interest in the four leases (ADL#s 391718, 391719, 319720
and 391721), totalling 22,711 acres all of which are located on the
North Slope, Alaska, USA will be 31.5% (as set out in the table on
page 2) upon completion of the transaction detailed in this ASX
release. (x) The prospective resources have been estimated on the
following basis: the best estimate prospective recoverable resource
calculation was based on a consideration of offset well information
and seismic expression; a combination of volumetric assessment and
field analogues have been used to estimate the prospective
resources; exploration drilling will be required to assess these
resources. (xi) The chance of discovery is considered moderate as
the prospective resources are near developed and undeveloped
reserves and in a proven oil and gas producing province. There is a
risk that exploration will not result in sufficient volumes of oil
and/or gas for a commercial development. (xii) Prospective
resources are un-risked and have not been adjusted for an
associated chance of discovery and a chance of development.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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